capital market Markets

NB, Dangcem, GTB push daily turnover to  N4.46bn as stocks shed N2bn

July 23, 2020910 views0 comments

We don't know NIRSAL's eligibility criteria for CBN intervention funds, we didn't get it, SMEs lament The dust generated by the alleged refusal of NIRSAL Microfinance Bank to disburse the N50 billion CBN Covid-19 intervention fund to micro, small and medium enterprises is yet to settle as complaints persist of inaccessibility of the loans. A cross section of SMEs operators who spoke on the development, particularly members of the LCCI, MAN, said they did not understand the criteria adopted to NIRSAL Microfinance Bank to determine those who qualify for the loans and those not.. The House of Representatives on Tuesday resolved to probe the CBN and NIRSAL Mictofinance Bank over the widespread complaints that the loans were not disbursed to eligible applicants. It was gathered that many who applied for the loan through NISRAL’s online platform did not get an acknowledgement of their applications while only a few got feedback from the organisation. The CBN had introduced a N50bn COVID-19 Targeted Credit Facility aimed at providing financial relief to households and small businesses as they cope with the economic impact of the pandemic. The apex bank said the loan disbursements would be based on the activity, cashflow, and industry size of the beneficiaries. It said each eligible SMEs would receive a maximum of N25m while qualified households could access a maximum of N3m each. To ensure easy access to the credit facility, the CBN promised to waive the provision of guarantor requirement for applicants. In addition, the CBN said all applicants to the N50bn credit facility that had successfully completed the application processes and submitted their account details should expect credit alerts 48 hours afterwards. Sharing the experiences of manufacturers who tried to access the loan, the acting Director-General, MAN, Ambrose Oruche, said 12 of MAN’s members who applied for the loan were not credited. According to him, there was no acknowledgment from the NISRAL microfinance bank. “We had 12 companies that qualified; we prepared their business plans and sent their applications. The microfinance bank did not acknowledge the application not to talk of giving out the loan,” he said. “The N50bn loan: manufacturers did not get it. The applications went through successfully. I think the N50bn went mostly to households and traders. “Some households that were affected by the pandemic and applied in Lagos and got acknowledgement for their applications were not considered. So, who took the N50bn?” He said that the association was still processing the N1tn loan and the N100bn loan for its members. Also, the Chairman, SME Group at Lagos Chamber of Commerce, Mr Daniel Okezie, said none of the applicants to the N50bn CBN COVID-19 facility got the loan despite meeting all the criteria. Speaking on the matter, he said only five per cent of LCCI members’ applicants received another CBN loan for SMEs and agricultural businesses. He said, “Most of our members were able to meet up with the conditions for both the COVID-19 SME loan and the CBN SME and agric loan that is still running now. Most of our members are qualified. “We are trying to take it up with the NISRAL head in Lagos. The main requirement was that applicants must have had some kind of training on entrepreneurship and most of our members have that.

By Omobayo Azeez

The struggle for dominance between the bulls and the bears got tougher on Wednesday as mixed sentiments dominated activities at the Nigerian Stock Exchange (NSE) leaving investors with a marginal loss of N2 billion.

However, the turnover for the session caught the attention of market observers as traded volume and value went up significantly by 32.37 per cent and 39.35 per cent respectively.

This record was pushed most significantly by trades on the shares of the Nigerian Breweries Plc, Dangote Cement Plc and Guarantee Trust Bank Plc.

Specifically, a total of 402.636 million shares worth N4.554 billion were transacted in 3,252 by investors on the floor of the NSE during the mid-week session, higher than 304.185 million valued at N3.268 billion that exchanged hands in 3,500 deals in the previous session.

The Nigerian breweries recorded the highest market momentum by trading 52.619 million shares worth N1.631 billion in 88 deals to top volume and value charts.

Dangote Cement followed with 10.869 million shares estimated N1.331 billion in 190 trades while GUARANTY trailed with a record of 9.507 million shares worth N204.848 million realized in deals.

Meanwhile, as trading in the Nigerian equities market was mixed, most stocks traded sideways through the day’s session.

Thus, the All-Share index was flat at 24,173.53 points while market capitalization settled at N12.610 trillion. Accordingly, Month-to-Date (MtD) and Year-to-Date (YtD) losses were also flat at -1.3 per cent and -9.9 per cent respectively.

Analysing by sectors, the Consumer Goods (+0.1 per cent) and Oil & Gas (+0.04 per cent) indices recorded marginal gains, while the Insurance (-0.6 per cent) and Banking (-0.03 per cent) indices declined. The industrial Goods index was flat.

It was also tie between the gaining and the losing camp as nine gainers and nine decliners emerged while 20 other securities closed the session on unchanged prices.

Based on the day’s trading statistics pulled from the official website of the exchange, low-cap stocks, led Maybaker top the gainers’ chart. The company recorded N0.22 gain to close at N3. Eternal Oil, Neimeth, Fidson and NPF Microfinance Bank gained N0.16, N.20, N0.10 and No.1 to close at N1.96, N1.50, N3 and N1.42 per share respectively.

On the flip side, the losing camp was led by Glaxosmith with a loss of N0.5 to close at N4.75 per share, followed by AFRPRUD which shed N0.12 to close at N4.01 per share.

Other decliners are Caverton, Sterling Bank and ChIPLC, with N0.06, N0.4 and N0.04 losses to close the day N1.84, N1.18 and N0.45 per share respectively.

Businessamlive Website Stats